Focus Gold Corp (OTC:FGLD) is an exploration stage company, and as such doesn’t generate revenues. It has been slowly slipping down since late March. Today may be one of the days traders can get a profit, if they play it right.
Yesterday, FGLD closed at $0.37 for a 2.63% drop on 193 thousand shares. Shortly before the market closed the company issued a PR, and later two promotional newsletters about FGLD were sent out.[BANNER]
The PR concerns some geological mapping done at the FGLD’s porphyry gold-copper project in Mexico.
One of the promoters disclose a $7.5 thousand compensation for a one-day profile, which may not be too exciting. The other promoter, however, has been compensated $150 thousand cash for a one-week campaign.
FGLD was promoted by the same promoter in June. The result then was a one day spike in price and volume. The compensation back then was a third of what it is this time.
The company’s latest 10-Q showed FGLD had some $230 thousand working capital on May 31, and a $1.5 million net loss recorded for the quarter.
Junior gold companies are risky plays at any time, and given the limited effect of the previous promotion traders should be careful when deciding whether to play FGLD.
